Ellsworth County commissioners have reached
agreements with Smoky Hill Wind Farm, L.L.C, a development planned
north of Ellsworth, on the Ellsworth County-Lincoln County line.

After several months of back and forth discussions between officials
from Smoky Hill Wind Farm and Commissioners Kermit Rush, Al Oller and
Terry Kueser, agreements on payment-in-lieu-of-taxes (PILOT), roads
and escrow were hammered out and signed at a special meeting March 27.

"I think everything finally worked out," Rush said this week.
"It seemed like it took an awful long time, but we wanted to make sure
it was done right before we signed it. Weíre glad to get it done."

"I'm in total agreement with Kermit," Oller said. "It took awhile -
everything we submitted to them, they drug their feet until it was
actually time to make a move and then they were receptive."

"Iím glad the process is over," Kueser said. "I look forward to having
a positive relationship with them."

Kueser said he hopes the Kansas legislature will provide county
governments in the future with some direction pertaining to the siting
and governance of wind power generators and like projects.

"We're certainly very pleased to have these agreements signed," said
Geoff Coventry, vice president of business development for TradeWind
Energy of Lenexa, the parent company of Smoky Hill Wind Farm L.L.C.

Having signed a similar agreement with Lincoln County, Coventry said
he was happy with the cooperation shown by commissioners in both
Ellsworth and Lincoln counties, as well as the enthusiasm shown for
the wind power project by people in both counties.

Ellsworth County Clerk Jan Andrews said the PILOT agreement stipulates
Smoky Hill Wind Farm L.L.C. will pay Ellsworth County $125,000 once
phase one of the wind power project has taken place. After the first
year is complete, Smoky Hill Wind Farm will pay Ellsworth County
$100,000 per year for nine years.

The PILOT agreement also stipulates that Ellsworth County will not
sign any zoning laws relating to the wind power project.

Andrews said there is no decommissioning clause included in the PILOT
agreement since that is included with the leases signed by the
individual property owners.

She noted the agreement stipulates that if construction on phase one
of the wind power project has not commenced by Dec. 31, 2012,
Ellsworth County will conclude that Smoky Hill has decided not to
pursue the project and the agreement will become null and void.

Finally, the PILOT agreement stipulates that in the event K.S.A.
79-201 (the tax exemption for wind farms) is repealed or amended in a
manner that results in an obligation of Smoky Hill to make ad valorem
property tax payments to Ellsworth County in a particular calendar
year, the PILOT payments required in the agreement for that calendar
year shall be reduced by an amount equal to the amount of ad valorum
property tax payments made by Smoky Hill to Ellsworth County.

Andrews said the road agreement signed between the two parties
addresses repairs to Ellsworth County roads if necessary.

Before the start of the wind power project, Smoky Hill Wind Farm will
shoot a video of the roads in Ellsworth County as of the date taken.
This will provide proof of the condition of the roads before the start
of the project for comparison purposes.

Andrews said the escrow agreement stipulates $100,000 be put up by
Smoky Hill Wind Farm in an escrow account at Citizenís State Bank and
Trust Company in Ellsworth to ensure any Ellsworth county roads
damaged during the project will be repaired at Smoky Hillís cost.
Andrews said Smoky Hill will contract out the necessary road repair
work subject to Ellsworth County specifications and approval.

TOPEKA - Responding to opponents of a new wind farm
planned in the state's Smoky Hills, Topeka Rep. Annie Kuether said
Thursday she'll sponsor a bill placing new requirements on wind
project developers.

But another lawmaker, who represents residents in the Smoky Hills,
said he doubted the measure would pass.

"I don't think it's doable at all," said Rep. Josh Svaty, D-Ellsworth.
"As long as you have a willing buyer and a willing seller and it
doesn't pose any harm to any adjacent landowners, we as a Legislature
have no business getting involved in those transactions."

Meanwhile, Rob Freeman, chief executive officer for the farm's
developer, TradeWind Energy LLC of Lenexa, told House Energy Committee
that wind power is increasingly cost effective compared to the rising
financial and environmental costs of building new coal-fired power
plants.

The TradeWind site in Lincoln and Ellsworth counties is slated to
eventually produce 250 megawatts of energy. So far, utilities signing
up to purchase the power include Sunflower Electric of Hays and Kansas
City Board of Public Utilities and the company is seeking others.

"The Smoky Hills project is expected to be the most energetic site of
any wind project site in the state of Kansas," Freeman said.

Construction on the first 100-megawatt phase is set to begin in March.

Kuether, a Democrat, said she supports wind energy and her
legislation, which is still in the drafting stage, isn't intended to
imply that TradeWind or any other wind developer had done anything
wrong.

But she's concerned the state could lose scenic landscapes in the
Smoky Hills and elsewhere with increasing construction of wind
turbines.

"It's just that nobody has any rules to follow," she said. "This gives
the county commissioners maybe a little more understanding of what
they should look at when the big guys come into their counties and
wave the money in front of them."

Ellsworth County landowner Gordon Homeier joined several Ellsworth and
Lincoln county officials and residents at Thursday's meeting to show
support for the planned Smoky Hills Wind Project.

Homeier's leasing some acreage to TradeWind as are 99 other people who
own land in Ellsworth and Lincoln counties. He's pleased the lease
agreement allows him to share in the company's revenues.

"It will become increasingly valuable to us as the project matures,"
Homeier said.

The company also plans to make voluntary payments of $300,000 in lieu
of taxes to the counties because state law exempts property taxes on
renewable energy facilities.

Virgil Huseman, an Ellsworth County landowner, lives adjacent to the
planned site for the new wind farm. He came to the meeting with a
small group of Flint Hills ranchers who say the project will damage
native prairie and scenery.

"When you come over the hill going west on I-70 and see this view, it
just kind of takes your breath away," Huseman said of rolling hills
near the exit to U.S. Highway 156.

He backs Kuether's proposal to place into law a set of environmental
siting guidelines written by a state task force in 2003. They include
recommendations that companies inform adjacent landowners of a
proposed site, that they also consider biological settings and consult
with environmental experts, among others.

The guidelines were drafted during a debate in the Flint Hills over
proposed wind farms there. The controversy led to state
recommendations, but no laws, suggesting developers avoid building
farms in a central swath of the scenic Flint Hills, the nation's last
stand of tallgrass prairie.

The Smoky Hills weren't included in the recommendation, although the
task force's guidelines recommend avoiding wide areas of unbroken
native prairie.

Homeier disputed the contention that the wind project will go on
unbroken prairie. The land is grazed, he said, and also has
intermittent tilled acreage.

Svaty said the opponents have created an atmosphere that's hindered
wind development and caused some investors to pull out of Kansas.

"You have certain groups in this state who are not going to be
satisfied with wind anywhere," he said. "They will construe whatever
they need to construe to make sure nothing ever gets built."

But Kuether said she's concerned the local residents' views aren't
considered before a project is planned. She's hoping her bill will
require developers to explain their intentions at public meetings.

Kansas currently has about 360 megawatts of wind power produced by
three major farms at different sites. Gov. Kathleen Sebelius recently
called for expanding the amount of wind energy produced in Kansas to
10 percent by 2010.

Both opponents and proponents of TradeWind Energy's
proposed Smoky Hill Wind Farm in northern Ellsworth and southern
Lincoln counties were heard Monday afternoon during an informational
meeting conducted by the Ellsworth County commission.

Virgil Huseman, a trustee for Garfield Township, spoke in opposition
to the wind farm.

"These so-called wind farms in no way resemble your grandfather's wind
farm," he said. "These are giant, industrial wind turbines,
approximately 400 feet-tall, we heard 375 feet-tall this morning, that
dominate the landscape."

Garfield Township has submitted a resolution to the Ellsworth County
commission requesting they not take any action with respect to the
approval of or enter into any agreements with TradeWind Energy, and do
any and all things necessary to halt construction of a wind energy
project until answers to several questions put forth in the resolution
are received. A similar resolution has been submitted by the trustees
of Sherman Township.

If built, Huseman said the Smoky Hill Wind Farm will destroy the
beautiful view of the Smoky Hills.

"All we'll see will be giant turbines and blades spinning on the
horizon," he said. "We're asking you today to go slow, be careful. The
Ellsworth County commission is all that stands between the bulldozers
and our beautiful hills."

Garfield Township resident Zach Grothusen asked commissioners to
establish a moratorium on the wind power project in Ellsworth County
until more answers are received.

"You do have the authority to put on a moratorium,"
said Rose Bacon, a rancher from Morris County. "You are in a position
to make a difference - it's up to you."

Sherman Township resident Gordon Homeier, a proponent of the Smoky
Hills Wind Farm, asked those gathered who were in favor of the wind
farm to stand up. About half of the 80 people attending did so.

"There's our silent majority commissioners," he
said. "You have had this before you for four years. If you have not
gathered enough information by now, you never will. It's time to get
this thing taken care of. Either with you or without you, this project
is moving forward. You cannot stop it."

As such, Homeier said the job of the county commission was to decide
whether or not they want to reap the benefits of a PILOT agreement
with TradeWind Energy and to be assured of the safety of county roads
and infrastructure.

"Both of these were addressed at your meeting this morning," he said.

Homeier then turned his attention to the opponents of the wind farm.

"It is not your right to tell me what I can and cannot have,"
he said. "Let's be realistic about this - we must go forth and use
this earth to maintain ourselves."

Ellsworth County commissioners Monday agreed to
discuss resolutions they have recently received from trustees in
Garfield and Sherman townships, asking them to not take action on wind
energy development issues until certain guidelines are met.

Officials scheduled a public meeting at 1:30 p.m. Monday, Jan. 22, at
the county courthouse.

Ellsworth County Attorney Joe Shepack said he received an e-mail from
developer TradeWind Energy containing a map of both phases of the
Smoky Hill Wind Farm project.

"It looks like they will be utilizing four township roads," Shepack
said, noting Phase 1 is in Lincoln County, with only parts of Sherman
and Columbia townships in Ellsworth County involved in Phase 2.

"We're largely irrelevant in this," he said. "I will get a hold of
Rick [Nondorf, county road and bridge superintendent] and find out
what we have up there at risk, if anything."

Shepack said his main concern centered on possible damage to the
county's box culverts.

Sherman Township resident Gordon Homeier questioned the validity of
his township's resolution, noting one trustee, Rick Pflughoeft, no
longer resides in the township.

"That is not the feeling of the residents of the township, and they
are not representing us," Homeier said.

Jan Andrews, county clerk and election officer, said it is impossible
for her to know where Pflughoeft sleeps.

"I can't bed check him," she said. "It's up to the township
- if they
want to do a recall, it's up to them."

Shepack noted it is a matter of defining "resident."

Commissioner Kermit Rush asked Homeier what he wanted them to do about
the resolution.

"You can understand there are other views in Sherman Township than
this," said Homeier, adding he was unaware of the resolution until he
attended Monday's commission meeting.

"We realize there are opposing opinions about this issue,"
Commissioner Terry Kueser said.

"Do you realize how little of Ellsworth County is involved in this
project?" Homeier asked. "Eight square miles north of I-70 - none of
Phase 1 is going to be in Ellsworth County except an above-ground
power line. And there will only be 10 towers in Ellsworth County. I
guarantee it, because I know where they are sited."

Homeier suggested commissioners pick their battles well, and do what
is good for the county, and not just for a few people.

"We're not acting as a proponent nor opponent," Kueser said. "Our only
legitimate interest in this proposed wind farm is to protect Ellsworth
County roads and infrastructure. We don't have the ability to deny or
create a wind farm."

SPEARVILLE - Decades ago, every house in this
southwest Kansas community of fewer than 1,000 came with a windmill.

That was before the arrival of electricity and other modern-day
conveniences.

For years, the few reminders of those early times included the
Windmill Restaurant on main street and a sign at the edge of town
which directs motorists to Spearville - "Home of windmills and Royal
Lancers," the local high school team.

That all changed several months ago, when developer EnXco of
California and energy customer Kansas City Power & Light dedicated
their $166 million Spearville Wind Energy Facility north of town.

Spearville is once again the home of the windmills; however, these are
nothing like the picturesque machines of the past. These soar over the
flat landscape of southwest Kansas - not unlike 30-story buildings
suddenly appearing in Carneiro.

The wind farm is the state's third, and more are planned, including
the Smoky Hills Wind Farm in northern Ellsworth and southern Lincoln
counties.

First in line for the energy generated by the Ellsworth-Lincoln wind
farm is the Hays-based Sunflower Electric, which has a 20-year
contract to purchase about 50 megawatts a year from developer
TradeWind Energy.

That will be enough power to light 14,600 homes for a year, said
sunflower spokesman Steve Miller.

The farm's capacity upon completion is expected to be 250 megawatts
-
which is more than twice as large as the Spearville project. There's
also another difference - the Ellsworth-Lincoln project will dip into
the region's unbroken prairie. The Spearville farm utilizes mostly
cropland.

This past week, from Kansas Highway 283, the outline of Spearville's
67 wind turbines could be seen from miles away. Along Eagle Road,
which has turbines on both sides, houses stand every half-mile or so.

Tom and Robert Rodriguez live four miles from the farm, but the
colossal towers, which measure 389 feet from the base to a
fully-extended blade, seem much closer. They even dwarf Spearville's
grain silos, the tallest structures around before the windmills
arrived.

"I'm fascinated with them," said Roberta Rodriguez.
"I heard somebody
in Spearville doesn't like them, but I don't know why. People
sometimes park along the side of the road just to watch them."

The Rodriguezes watched as the towers were erected, marveling at their
size and the daring of the workers who built them.

"They looked like they were that tall," Tom Rodriguez said, holding
two fingers about an inch apart to illustrate the scale of man against
machine.

Roberta Rodriguez said there has been no noise, no ground tremors -
both of which have been reported other places - to disturb them. Other
neighbors closer to the turbines say there is a "swooshing" sound,
similar to ocean water hitting rocks. One farmer who lives 1,000 yards
from the farm described the sound as "soothing."

Roberta Rodriguez agrees. "I love going out at night
and looking at them. Of course, I have to count every one," she said.
"The only thing I don't like is - why don't they send some of that
power over here?"

Tom Rodriguez likes the wind farm because the resource it uses is
renewable, unlike much of the groundwater that supports the region's
thousands of acres of irrigated cropland and livestock industry.

A multi-year drought has only made conditions worse. Rodriguez said
the nearby Arkansas River is bone dry.

"You could get eight inches of rain, and I think it would soak it up.
It's terrible," he said.

Spearville is in Ford County, about 17 miles east of Dodge City. It's
one of those places where the land seems to stretch forever.

Many of the crops in the immediate area are grown without irrigation,
which becomes more popular farther west. The federal Conservation
Reserve Program, which pays a landowner to plant his more fragile land
to grass, also is common.

As everywhere, farming can be a dangerous business economically. The
windmills have helped because of the yearly lease payments paid to
landowners.

Michael Hitz, president of Spearville's Ford County State Bank, said
one of his farm customers has three towers on his land.

"That's $12,000 a year in cash flow for giving up an
acre of land," Hitz said.

Others also have benefitted.

In lieu of property taxes, which are not applicable to wind farms,
developers agreed to pay yearly sums to local taxing entities.

The Spearville School District, with 330 students, is set to receive
$108,000 this year and every year plus three percent for the next
three decades.

The money will count as a gift and not affect the district's state
aid, Superintendent Mark Littell said.

A committee is looking at maintenance and repair projects, the need
for new buildings and other options.

"We feel very secure, but we haven't really decided what we're going
to do with the money until we see it," Littell said. "That money will
be a big help. The wind farm has been very good for us."

Mayor Ken Domer, president of Spearville's other bank, First National,
also is a supporter of the wind farm. The city is not on the
"donation-in-lieu-of-taxes" list, but the lease money to landowners
and the material purchased by the developers to build the wind farm
all helped the town, he said.

He said the project required 1,822 truckloads of concrete and more
than 600 trucks to deliver equipment and turbine components to
Spearville.

Many members of the construction crew came from elsewhere, leaving the
town without any vacant rentals as the wind farm was being built.

The site, operational since October, had added about 10 jobs to a
community with little industry. Beyond farming, Spearville is home to
Crustbuster, an implement manufacturer, and Feist Publishing, which
produces regional telephone books.

Looking north on main street, the white towers appear to rise from the
landscape to stand guard over the town.

"I find them kind of majestic," banker Hitz said.

He remembers one foggy morning, when the turbines were hidden except
for when a blade passed close to the exposed ground.

Spearville differs from Ellsworth County, Hitz said.

"People drive in your area to see the hills. Nobody drives out here
because it's flat.

"Is this as much economic development as putting a prison in your
town? I don't know. They created jobs.

"We've got enough packing plants and feedlots, and what does the wind
use? Granted it's not the solution, but it's part of it and we have to
do something."

WILSON - Opponents of the Smoky Hill Wind Farm
development in northern Ellsworth and southern Lincoln counties were
in Wilson Dec. 27 to ask U.S. Representative Jerry Moran, R-Hays, for
assistance.

"Somebody said all politics is local," said Ellsworth County rancher
Virgil Huseman. "We might see one of the biggest changes in the
landscape of Ellsworth and Lincoln counties, probably in the history
of Ellsworth and Lincoln counties, with the proposed wind farm."

Moran stopped at Wilson's historic Midland Hotel for an afternoon
visit as part of his annual listening tour of the Big First District.

Huseman told Moran that the elected officials he has talked with have
not seen a map of the proposed wind farm.

"The talk is that it will be 16 miles long and four miles wide, and
you will drive through it today as you turn to Lincoln on Highway 14,"
Huseman said. "As you drive west toward Hays, when you look out over
that big, beautiful viewscape, that will never look the same if this
happens."

Huseman said Congress has provided billions of dollars in tax credits
and subsidies to wind farm developers, but have not included with
those funds any siting guidelines.

"There has never been, to my knowledge, a public meeting called by the
wind farm developers to explain what they were doing in Ellsworth and
Lincoln counties," he said. "It's all been done in secret. That's our
concern, and I don't know if there is anything you can do about it,
but it's a big issue."

"I know it's a big issue," Moran said. "In some of my communities,
it's the other criticism - 'you guys in Washington haven't done enough
- we need to promote wind energy, and you are doing too little.' And
so I've asked my staff to review all the things that are out there
that encourage the development of wind farms."

Moran said the location of wind farms should be a local decision.

"My guess is here in Ellsworth County or in Lincoln County there is
this debate about 'it's my property and I can do what I want to do
with it, even when it comes to wind farms,'" he said. "And there are
those like you who take a broader view that says, 'this has a huge
impact upon the vista.'"

Moran said he needs to study the situation in Ellsworth and Lincoln
counties.

"Where do you think this issue is now?" he asked. "Obviously you still
think something can be done to keep it from happening."

Responded Huseman, "I think there is some question about whether the
county commission may have some authority or may not. I think we are
trying to determine that."

At some point, wind farm developers will need to pay property taxes,
Moran said, but that won't happen until state lawmakers take action.

Moran said this issue brings back memories of Seaboard Farms.

"This is like corporate farming all over again," he said. "And it is
dividing counties still today."

"The mad rush to wind energy is so strong," said Huseman. "And the
responsible government regulation of that industry is behind it two
steps. I can't even build a feed yard without getting permission from
the Department of Health and Environment. I couldn't even improve the
bridge across my creek without getting a permit from the Division of
Water Resources. At some point, they are going to violate enough
people and enough beautiful country that government is going to say
'hey, we can't do this - there's got to be some rules.' And they will
pass them, but it's going to be too late for Ellsworth and Lincoln
counties."

Turning to other topics, Moran said his tour of the Big First District
has been going well. He was to return to Washington Jan. 3.

While green may have been a prominent color of the
past holiday season, it's also a color the Kansas City Board of Public
Utilities is interested in for the future.

In a work session prior to the regular meeting of the BPU Board of
Directors Wednesday, the board heard about the specifics of a new
contract signed by General Manager Don Gray committing to buy 25
megawatts of wind power capacity from TradeWind Energy,LLC, a Lenexa,
Kan.-based wind farm developer.

"We are excited about adding this renewable source of energy to our
generating mix - it is important for our future," Gray said in an
e-mail about the contract. "We strive for a balance in our energy
development, and we're proud that Kansas wind power will be part of
that mix."

The 20-year contract stipulates that the BPU purchase 25 megawatts of
capacity from the wind farm. Both the BPU and Tradewind Energy
declined to say specifically how much one megawatt hour would cost,
but they did estimate a price near $45 per megawatt hour. The price is
fixed for the duration of the contract.

By comparison, BPU's two conventional power plants, Nearman Creek
Power Station and Quindaro Power Station, have a combined capacity of
631 megawatts.

"This contract is a hedge against higher fuel prices in the future,"
BPU's Blake Elliot said. "We think this will save our ratepayers more
than $3 million during the next 10 years."

The power will come from the Smoky Hills Wind Farm, located about 20
miles west of Salina, Kan. The farm will generate 250 megawatts of
power from 139 wind turbines spread out over 20,000 acres, and will be
visible from Interstate 70.

"We believe that the BPU is going to be a part of one of the best wind
sites in Kansas," TradeWind Energy senior vice president of corporate
development Frank Costanza told board members Wednesday night. "We
looked at more than 25 sites across the state, and are confident that
the Smoky Hills area offers some of the best topography for wind
generation."

The Smoky Hills wind farm will be the fifth wind farm in operation in
Kansas. Costanza says the company plans to begin work on the site in
the third quarter of this year, with plans to make the energy
commercially available sometime in the last quarter of 2007.

"I wouldn't be talking to you about this type of wind project five
years ago," Costanza told the board. "However, the economies of scale
involved for wind generation now make it cost effective for this type
of development."

According to 2006 data provided by the American Wind Energy
Association, wind power's capacity of 10,500 megawatts represents just
1 percent of the 900,000 megawatts total power generating capacity in
the United States. The AWEA shows that Kansas produces 364 megawatts.
The Smoky Hills wind farm, at 250 megawatts, will be the largest in
the state.

A 2002 study by the Public Interest Research Group estimated that
Kansas has more wind energy potential than any other state, and if
fully tapped, could provide nearly a third of all electricity needs in
the United States.

"In general, as you move from west to east across the United States,
the quality of the wind greatly decreases," Costanza said.

While the Smoky Hills wind farm isn't in the far western reaches of
Kansas, it's far enough out to capture the wind, but close enough to
the two initial customers of the project, BPU and Sunflower Energy,
that transmission of the power remains relatively cheap.

Recent spikes in the costs of fuel used by utility companies has
allowed for renewed interest in wind energy. Data from Tradewind shows
the cost of delivered coal power runs at $50 per megawatt hour, while
the cost of delivering Midwest wind power can range between $45 and
$60 per megawatt hour.

A number of states have passed regulations regarding alternative
energy sources, including Maine, which requires that 30 percent of
power in the state comes from renewable sources. Twenty-two other
states have passed similar laws, but Kansas remains without such a
quota.

Vestas, a Denmark-headquartered wind turbine
manufacturer, has received an order for 56 units of V80-1.80 MW
turbines to be delivered in the third quarter of 2007 for the Smoky
Hills project located in Kansas.

The 100 MW order was placed by Enel North America Inc., a subsidiary
of Enel SpA that owns and operates renewable energy plants in North
America. Vestas will supply, install and commission the wind turbines,
the company says. The order includes a five-year maintenance and
service agreement.

"Vestas is delighted to secure another order with Enel, and we look
forward to growing our relationship in North America," says Jens Soby,
Vestas' president. "We are also very pleased that large international
utilities now are making long-term commitments to the North American
market."

Sunflower Electric has announced plans to purchase
part of its future energy supply from a new wind farm to be built in
Lincoln and Ellsworth counties.

Officials at the Hays-based electric cooperative said Thursday they
had negotiated with TradeWind Energy of Lenexa to buy 50.4 megawatts
of power generated by wind towers at the planned Smoky Hills Wind
Farm.

The site will be located about 25 miles west of Salina between
Ellsworth and Lincoln. Because turbines will sit just north of
well-traveled Interstate 70, a Lincoln County official expressed hope
they would spur more local tourism.

"As far as I know there's no place else in this part of the country
where you could drive by and see 50 wind towers," Bob Crangle,
attorney for the Lincoln County Economic Development Foundation, said
Thursday.

Despite some area residents' opposition to wind farm development in
the scenic Smoky Hills of central Kansas, Crangle said he'd heard
plenty of positive local reaction to TradeWind's project, named the
Smoky Hills Wind Farm.

Phase one is slated for construction in Lincoln County next year. The
entire project is expected to generate 250 megawatts when completed.

"The direct economic impact in 2007 from the construction phase I'm
sure will spill over into Ellsworth and Saline counties," Crangle
said. "And there will be ongoing revenues to landowners leasing to
TradeWind."

Sunflower's purchase of wind-generated electricity would make it a
renewable energy leader in the state, the company said.

Earl Watkins, Sunflower president and chief executive officer, said in
a press release that they will have a larger portfolio - about 8
percent - dedicated to wind than other Kansas utilities.

Sunflower, which serves cooperatives in much of western Kansas,
currently generates 595 megawatts of electricity from coal-fired and
natural gas units in Finney County.

The company and other investors also are seeking to build a
2,100-megawatt complex of three more coal-fired power plants in Finney
County. The plants have proven controversial, with protests emerging
this week from 13 northeastern states seeking to reduce carbon
emissions, caused in large part by burning coal.

Crangle said Sunflower's use of clean energy from the Smoky Hills site
could help the company.

"It may give them a more favorable environmental image because they'll
be using a significant percentage of renewable energy."

TradeWind will make payments in lieu of property taxes to the two
counties over several years, Crangle said. Lincoln County
commissioners plan to use the money for long-term economic development
investments in the county of 3,600 people.

"If used properly, it will help existing and new businesses create
jobs and will help create incomes," he said.

Sunflower has signed a 20-year purchase agreement with TradeWind.

Frank Costanza, TradeWind senior vice president, said other
participants in the latter phases of the project would be announced
soon.

TradeWind is developing projects in Kansas, Missouri, Illinois and
other Midwestern states, according to the press release.

In 2006, the company signed an equity and strategic alliance agreement
with Enel North America, a subsidiary of the Italian energy group Enel
S.p.A. The two companies work jointly to develop wind projects in the
Midwest.

Sunflower tried earlier to purchase wind-generated power, reaching
accord in 2003 with Renewable Energy Systems, a British wind farm
developer, for 30 megawatts of power from a planned 100-megawatt wind
farm planned near Leoti in Wichita County. But the deal fell apart
earlier this year after RES was unable to get turbines to complete the
project, said Sunflower spokesman Steve Miller.

Also, if Mid-Kansas Electric Co.'s proposed purchase of Aquila's
energy assets in Kansas gains state approval, Mid-Kansas would acquire
the contract for another 50-megawatts of wind power generated at the
Gray County Wind Farm near Montezuma. Mid-Kansas is owned by the same
six power cooperatives that own Sunflower.

News reporter Tim Vandenack contributed to this report.

Sunflower to add wind energy

By KRISTEN WAGGENER, The Garden City Telegram, December 14, 2006

Sunflower Electric Power Corp. announced Wednesday
its plans to purchase 50.4 megawatts of wind energy from TradeWind
Energy, LLC.

The energy will be generated by wind turbines at TradeWind's Smoky
Hills Wind Farm, located 25 miles west of Salina, between Ellsworth
and Lincoln. The deal is part of a 20-year renewable energy purchase
agreement between the two companies.

Scheduled to be completed by the end of 2007, the project would mean
Hays-based Sunflower would have a larger portion of its total energy
generation dedicated to wind than any other utility in Kansas at
nearly 8 percent, according to Sunflower.

"Our board has had a long standing policy of wanting to incorporate
wind into our generation portfolio," Steve Miller, Sunflower's
director of external affairs, said this morning.

The agreement comes in the midst of a Kansas Department of Health and
Environment public comment period for an air quality construction
permit request by Sunflower that must be issued before the company can
proceed with its plans to build three new 700-MW, coal-fired power
plants at its site near Holcomb. The deadline for public comment is
Friday.

Many who have opposed the Sunflower expansion project during the
public comment period have suggested that the company should be
seeking to use other, alternative forms of energy production,
including wind turbines, instead of more coal-fired plants.

The wind agreement reached Wednesday shouldn't be mistaken for the
company wavering on their expansion plans, however.

Sunflower officials have contended that while wind can be one
component for energy production, there isn't enough wind to provide
enough electricity for the company's customer base. With that in mind,
company officials say coal- and gas-fired production is still needed.

The addition of the wind power, Miller said, will not lead to a rise
in energy rates, but rather is aimed at providing a renewable energy
option for Sunflower's member systems and avoid the higher-cost fuels
like natural gas.

"What really needs to be done to successfully operate a public utility
is to have diversity in public utility energy resources," he said.